Glassnode, an on-chain analysis firm, has reported that Bitcoin is currently trading in a band with a maximum level of $117,000.
Bitcoin is trading between these two short-term price bands
It’s a brand new world post Glassnode talked about Bitcoin’s recent trading within a short-term band on X. The price band that is in question has been based on the two most relevant levels. short-term holders (STHs)Investors that purchased their coins during the previous 155-day period will be eligible for a.
The indicator related to the STHs that’s of interest here is the Realized PriceThis keeps track of average BTC cost or the level of acquisition of all BTC addresses that belong to the group.
When the value of this metric is greater than the asset’s spot price, it means the STHs as a whole can be considered to be in a state of net unrealized profit. On the other hand, it being under the coin’s value suggests the dominance of loss among this cohort.
Here is a chart that Glassnode shared, showing the STH Actual Price trend and some lines corresponding with different Standard Deviations (SDs).
The graph above shows that the Bitcoin price traded within a very interesting range over the past six months. This range was defined by the intersection of two lines. The range was defined by the lower boundary of -1 SD while the upper limit is +1 SD.
STHs tend to be made up by new traders and fickle investors, which is why they are quick to react to market events. As such, the cryptocurrency’s price can have some interactions with the STH Realized Price, due to the cohort’s panic buying/selling.
From the chart, it’s apparent that the same has been true in this period of consolidation As well. Although the indicator is not an absolute resistance or support, it has had a similar effect on the asset in the short run.
Bitcoin has risen above its metric since last month. The asset’s next level is the +SD. It has tested this line only once in this time of sideways movements.
“This level can be seen as the upper band of the short-term price action,”The firm notes that. Currently, the +1 SD sits at about $117,000. Bitcoin’s future test of this level is still to be determined.
BTC Price
Bitcoin is now worth $109,500 after a recent surge of over 3%.
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Source: www.newsbtc.com
